The New York Daily News reports that, on the back of the most successful year ever in the securities industry, economists at the New York Federal Reserve estimate that the total bonus pot for Wall Street firms will double this time around. And although bonuses for the average employee are likely to be up around 20% this year, firm bosses will take home some serious bonuses.
The newspaper reports that the smart money is on Goldman boss Henry Paulson pocketing $13m, $1m more than Philip Purcell, CEO at arch-rival Morgan Stanley. Stan O'Neal, chief executive over at Merrill Lynch, is said to walk off with up to $15m in bonus for this year's work and Citigroup Sandy Weill is a steal at just $17m. And Bear Stearns boss Jimmy Cayne took a $10m bonus last year and the general view is that he will do even better this time around.
Bigger bonuses are also good news for New York City - although Wall Street employs just 5% of the city's workers, those employees account for around 15% of total city incomes.
Even across the pond in the City, top bosses are likely to do well. Barclays Capital boss Bob Diamond is thought likely to add to the $14.5m bonus he received for 2002, after another good 12 months. Diamond is thought likely to earn significantly more than Matt Barrett, the chief executive of Barclays Group. Ditto John Studzinski, the co-head of HSBC's investment banking unit, who arrived earlier this year after a career with Morgan Stanley.
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